The Euro hit fresh three-week high vs the dollar at 1.3380, as risk-on mode accelerates and the pair started the week with 60-pips gap-higher opening. The price trades in a narrow consolidative range, ahead of the next target and lower platform at 1.3400, break of which to open key barrier at 1.3450, 20/08 peak. Near-term technicals are positive and favor further upside, however, further consolidation cannot be ruled out, as studies approach overbought territory. Immediate support lies at 1.3350, session low, ahead of 1.3300, Fibonacci 61.8% of 1.3252.1.3380 upleg, below which to signal stronger pullback towards key support at 1.3240, previous consolidation floor / 50% retracement of larger 1.3103/1.3380 ascend.

Cable remains well supported and continues to rally higher, with gap-higher opening today, surging through initial 1.59 barrier. The pair looks for test of psychological 1.6000 barrier and 1.6010, Fibonacci 76.4% of 1.6380/1.4812 descend. Break above short-term congestion and formation of double-bottom at the larger picture, sees scope for extension towards key med-term resistance at 1.6380, 2012 high, in the short-term. Positive near-term studies support the notion, however, bulls may be delayed, as hourly and 4-hour studies are overbought. Immediate supports lay at 1.5930, session low and 1.5900, while filling the gap on a slide below 1.5870, would signal deeper pullback.

The pair came under increased pressure after losing 99.00 handle, as overnight’s gap-lower opening triggered further weakness. Reversal off 100.60 peak retraced over 50% of 96.80/100.60 upleg on a dip to 98.44, session low, with near-term bears being fully in play and seeing scope for further easing towards 98.25, Fibonacci 61.8% and 98.00, round figure support. Completion of 4-hour H&S pattern supports the notion, with psychological 100 barrier being on hold for now, despite positively aligned daily studies.